Note, some people divide REVENUE by advertising (instead of PROFIT by advertising) and consider this ($1,500 revenue, $1,000 advertising cost, $500 profit) to be 150% ROI and break even to be 100% ROI; I consider this to be 50% ROI and break even to be 0% ROI because I view funnels and traffic like an investor and investors consider break even to be a 0% return.

So that’s how the numbers work…

If you improve any of the 5 ‘optimization metrics’ I mentioned above, your ROI will improve.

If you improve 2 or more of the 5 ‘optimization metrics’ I mentioned above, your ROI will improve exponentially.

1. The price point of the paid in full option
2. The price point of each payment included in the payment plan option
3. The number of payments included in the payment plan option
4. The percentage of customers who take your paid in full option
5. The success rate of payment plan payments beyond the first charge

It’ll also account for the cost of your merchant fees if you enter in your rates – For example, Stripe charges 2.9% of sales plus $0.30 per transaction.

The spreadsheet is created in a way where you can compare your funnel’s actual metrics with what your metrics need to be to:

1. Break even on your ad costs
2. Achieve your ROI goal (eg. Make $2 in sales for every $1 you spend on advertising)